Federal Register / Vol. 72, No. 77 / Monday, April 23, 2007 / Proposed Rules 20087 

refund may be deductible under 

§ 20.2053–3(d)(3). A protective claim for 

refund of estate taxes may be filed 

before the expiration of the period of 

limitations for claims for refund in order 

to preserve the estate’s right to claim a 

refund if the amount of a deductible tax 

liability may be affected by such an 

adjustment or refund. The application of 

this section may be illustrated by the 

following examples: 

Example 1. Increase in tax due. After the 

decedent’s death, the Internal Revenue 

Service examines the gift tax return filed by 

the decedent in the year before the 

decedent’s death and asserts a deficiency of 

$100x. The estate spends $30x in a nonfrivolous defense against the increased 

deficiency. The final determination of the 

deficiency, in the amount of $90x, is paid by 

the estate. The estate may deduct $90× under 

section 2053(a)(3) and $30x under § 20.2053–

3(c)(2) or (d)(3). 

Example 2. Refund of taxes paid. 

Decedent’s estate timely files D’s individual 

income tax return for the year in which the 

decedent died. The estate timely pays the 

entire amount of the tax due, $50x, as shown 

on that return. The entire $50x was 

attributable to income received prior to the 

decedent’s death. Decedent’s estate 

subsequently discovers an error on the 

income tax return and files a timely claim for 

refund. Decedent’s estate receives a refund of 

$10x. The estate is only allowed a deduction 

of $40x under section 2053(a)(3) for the 

income tax liability accrued prior to the 

decedent’s death. If a deduction for $50x was 

allowed on the estate tax return prior to the 

receipt of the refund, it shall be the duty of 

the executor to notify the Commissioner of 

the change and to pay the resulting tax, with 

interest. 

(h) Effective date. The rules of this 

section apply to the estates of decedents 

dying on or after the date of publication 

of the Treasury decision adopting these 

rules as final regulations in the Federal 

Register. 

Par. 7. Section 20.2053–9 is amended 

as follows: 

1. Revising the heading for paragraph 

(a) and adding a sentence at the end of 

paragraph (a). 

2. Revising the first and last sentences 

of paragraph (c). 

3. Adding new paragraph (f). 

The revisions and addition read as 

follows: 

§ 20.2053–9 Deduction for certain state 

death taxes. 

(a) General rules for the estates of 

decedents dying on or before December 

31, 2004.* * * For the estates of 

decedents dying after December 31, 

2004, see section 2058 to determine the 

deductibility of state death taxes. 

* * * * * 

(c) Exercise of election. The election 

to take a deduction for a state death tax 

imposed upon a transfer for charitable, 

etc., uses shall be exercised by the 

executor by the filing of a written 

notification to that effect with the 

Commissioner. * * * The election may 

be revoked by the executor by the filing 

of a written notification to that effect 

with the Commissioner at any time 

before the expiration of such period. 

* * * * * 

(f) Effective date. The rules of this 

section apply to the estates of decedents 

dying on or before December 31, 2004. 

Par. 8. Section 20.2053–10 is 

amended by revising paragraph (c) and 

adding a new paragraph (e) to read as 

follows: 

§ 20.2053–10 Deduction for certain foreign 

death taxes. 

* * * * * 

(c) Exercise of election. The election 

to take a deduction for a foreign death 

tax imposed upon a transfer for 

charitable, etc., uses shall be exercised 

by the executor by the filing of a written 

notification to that effect with the 

Commissioner. An election to take the 

deduction for foreign death taxes is 

deemed to be a waiver of the right to 

claim a credit under a treaty with any 

foreign country for any tax or portion 

thereof claimed as a deduction under 

this section. The notification shall be 

filed before the expiration of the period 

of limitations for assessment provided 

in section 6501 (usually 3 years from the 

last day for filing the return). The 

election may be revoked by the executor 

by the filing of a written notification to 

that effect with the Commissioner at any 

time before the expiration of such 

period. 

* * * * * 

(e) Effective date. The rules of this 

section apply to the estates of decedents 

dying on or after the date of publication 

of the Treasury decision adopting these 

rules as final regulations in the Federal 

Register. 

Kevin M. Brown, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. E7–7601 Filed 4–20–07; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[CGD13–07–009] 

RIN 1625–AA00 

Safety Zones: Fireworks Displays in 

the Captain of the Port Portland Zone 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Coast Guard is proposing 

to amend its regulations to establish 

additional safety zones on the waters of 

the Columbia River located in the Area 

of Responsibility (AOR) of the Captain 

of the Port, Portland, Oregon during 

annual fireworks displays. The Captain 

of the Port, Portland Oregon is taking 

this action to safeguard watercraft and 

their occupants from safety hazards 

associated with these displays. Entry 

into these zones is prohibited unless 

authorized by the Captain of the Port. 

DATES: Comments and related material 

must reach the Coast Guard on or before 

May 23, 2007. 

ADDRESSES: You may mail comments 

and related material to Petty Officer 

Michelle Duty at Sector Portland 6767 

N. Basin Ave., Portland, OR 97217. 

Sector Portland maintains the public 

docket for this rulemaking. Comments 

and material received from the public, 

as well as documents indicated in this 

preamble as being available in the 

docket, will become part of this docket 

and will be available for inspection or 

copying at Sector Portland between 8 

a.m. and 4 p.m., Monday through 

Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: 

Petty Officer Michelle Duty, c/o Captain 

of the Port, Portland 6767 N. Basin 

Avenue, Portland, Oregon 97217, 503–

240–2590. 

SUPPLEMENTARY INFORMATION: 

Request for Comments 

We encourage you to participate in 

this rulemaking by submitting 

comments and related material. If you 

do so, please include your name and 

address, identify the docket number for 

this rulemaking (CGD13–07–009), 

indicate the specific section of this 

document to which each comment 

applies, and give the reason for each 

comment. Please submit all comments 

and related material in an unbound 

format, no larger than 81⁄2 by 11 inches, 

suitable for copying. If you would like 

to know they reached us, please enclose 

a stamped, self-addressed postcard or 


pwalker on PROD1PC71 with PROPOSALS
20088 Federal Register / Vol. 72, No. 77 / Monday, April 23, 2007 / Proposed Rules 

envelope. We will consider all 

comments and material received during 

the comment period. We may change 

this proposed rule in view of them. 

Public Meeting 

We do not now plan to hold a public 

meeting. But you may submit a request 

for a meeting by writing to Sector 

Portland at the address under 

ADDRESSES explaining why one would 

be beneficial. If we determine that one 

would aid this rulemaking, we will hold 

one at a time and place announced by 

a later notice in the Federal Register. 

Background and Purpose 

The Coast Guard is proposing 

establish additional permanent safety 

zones to allow for safe annual fireworks 

displays. All events occur within the 

Captain of the Port, Portland, OR, Area 

of Responsibility (AOR). These events 

may result in a number of vessels 

congregating near fireworks launching 

barges and sites. The safety zones are 

needed to protect watercraft and their 

occupants from safety hazards 

associated with fireworks displays. 

These safety zones will be enforced by 

representatives of the Captain of the 

Port, Portland, Oregon. The Captain of 

the Port may be assisted by other federal 

and local agencies. 

Discussion of Proposed Rule 

This proposed rule, for safety 

concerns, will control vessels, personnel 

and individual movements in a 

regulated area surrounding the 

following fireworks events: Hillman 4th 

of July Fireworks Display, Vancouver 

WA; East County 4th of July Fireworks 

Gresham, OR; Port of Cascade Locks 

July 4th Display, Cascade Locks OR; 

Gladstone 4th of July Celebration, 

Gladstone, OR. Entry into these zones is 

prohibited unless authorized by the 

Captain of the Port, Portland or his 

designated representative. Captain of 

the Port, Portland, Oregon, will enforce 

these safety zones. The Captain of the 

Port may be assisted by other federal 

and local agencies. 

Regulatory Evaluation 

This proposed rule is not a 

‘‘significant regulatory action’’ under 

section 3(f) of Executive Order 12866, 

Regulatory Planning and Review, and 

does not require an assessment of 

potential costs and benefits under 

section 6(a)(3) of that Order. The Office 

of Management and Budget has not 

reviewed it under that Order. It is not 

‘‘significant’’ under the regulatory 

policies and procedures of the 

Department of Homeland Security 

(DHS). We expect the economic impact 

of this proposed rule to be so minimal 

that a full Regulatory Evaluation under 

the regulatory policies and procedures 

of DHS is unnecessary. This expectation 

is based on the fact that the regulated 

areas established by the regulation will 

be of limited duration and encompass 

small portions of the Columbia River in 

the Portland AOR in the evening when 

vessel traffic is low. 

Small Entities 

Under the Regulatory Flexibility Act 

(5 U.S.C. 601–612), we have considered 

whether this proposed rule would have 

a significant economic impact on a 

substantial number of small entities. 

The term ‘‘small entities’’ comprises 

small businesses, not-for-profit 

organizations that are independently 

owned and operated and are not 

dominant in their fields, and 

governmental jurisdictions with 

populations of less than 50,000. 

This proposed rule will affect the 

following entities, some of which may 

be small entities: The owners or 

operators of vessels intending to transit 

a portion of the Columbia River during 

the times mentioned in proposed 

regulation text § 165.1315(a)(15–18) at 

the conclusion of this proposed rule. 

The Coast Guard certifies under 5 

U.S.C. 605(b) that this rule will not have 

a significant economic impact on a 

substantial number of small entities. 

These safety zones will not have 

significant economic impact on a 

substantial number of small entities for 

the following reasons. This rule will be 

in effect for only three hours during the 

evenings when vessel traffic is low. 

Traffic will be allowed to pass through 

the zone with the permission of the 

Captain of the Port or his designated 

representatives on scene, if safe to do so. 

If you think that your business, 

organization, or governmental 

jurisdiction qualifies as a small entity 

and that this rule would have a 

significant economic impact on it, 

please submit a comment (see 

ADDRESSES) explaining why you think it 

qualifies and how and to what degree 

this rule would economically affect it. 

Assistance for Small Entities 

Under section 213(a) of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 (Public Law 104–

121), we want to assist small entities in 

understanding this proposed rule so that 

they can better evaluate its effects on 

them and participate in the rulemaking. 

If the rule would affect your small 

business, organization, or governmental 

jurisdiction and you have questions 

concerning its provisions or options for 

compliance; please contact Petty Officer 

Michelle Duty by phone at 503–247–

4015 or by e-mail at 

Michelle.K.Duty@uscg.mil. The Coast 

Guard will not retaliate against small 

entities that question or complain about 

this rule or any policy or action of the 

Coast Guard. 

Collection of Information 

This proposed rule would call for no 

new collection of information under the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501–3520.). 

Federalism 

A rule has implications for federalism 

under Executive Order 13132, 

Federalism, if it has a substantial direct 

effect on State or local governments and 

would either preempt State law or 

impose a substantial direct cost of 

compliance on them. We have analyzed 

this proposed rule under that Order and 

have determined that it does not have 

implications for federalism. 

Unfunded Mandates Reform Act 

The Unfunded Mandates Reform Act 

of 1995 (2 U.S.C. 1531–1538) requires 

Federal agencies to assess the effects of 

their discretionary regulatory actions. In 

particular, the Act addresses actions 

that may result in the expenditure by a 

State, local, or tribal government, in the 

aggregate, or by the private sector of 

$100,000,000 or more in any one year. 

Though this proposed rule would not 

result in such expenditure, we do 

discuss the effects of this proposed rule 

elsewhere in this preamble. 

Taking of Private Property 

This proposed rule would not affect a 

taking of private property or otherwise 

have taking implications under 

Executive Order 12630, Governmental 

Actions and Interference with 

Constitutionally Protected Property 

Rights. 

Civil Justice Reform 

This proposed rule meets applicable 

standards in sections 3(a) and 3(b)(2) of 

Executive Order 12988, Civil Justice 

Reform, to minimize litigation, 

eliminate ambiguity, and reduce 

burden. 

Protection of Children 

We have analyzed this proposed rule 

under Executive Order 13045, 

Protection of Children from 

Environmental Health Risks and Safety 

Risks. This rule is not an economically 

significant rule and would not create an 

environmental risk to health or risk to 

safety that might disproportionately 

affect children. 


pwalker on PROD1PC71 with PROPOSALS
Federal Register / Vol. 72, No. 77 / Monday, April 23, 2007 / Proposed Rules 20089 

Indian Tribal Governments 

This proposed rule does not have 

tribal implications under Executive 

Order 13175, Consultation and 

Coordination with Indian Tribal 

Governments, because it would not have 

a substantial direct effect on one or 

more Indian tribes, on the relationship 

between the Federal Government and 

Indian tribes, or on the distribution of 

power and responsibilities between the 

Federal Government and Indian tribes. 

Energy Effects 

We have analyzed this proposed rule 

under Executive Order 13211, Actions 

Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use. We have 

determined that it is not a ‘‘significant 

energy action’’ under that order because 

it is not a ‘‘significant regulatory action’’

under Executive Order 12866 and is not 

likely to have a significant adverse effect 

on the supply, distribution, or use of 

energy. The Administrator of the Office 

of Information and Regulatory Affairs 

has not designated it as a significant 

energy action. Therefore, it does not 

require a Statement of Energy Effects 

under Executive Order 13211. 

Technical Standards 

The National Technology Transfer 

and Advancement Act (NTTAA) (15 

U.S.C. 272 note) directs agencies to use 

voluntary consensus standards in their 

regulatory activities unless the agency 

provides Congress, through the Office of 

Management and Budget, with an 

explanation of why using these 

standards would be inconsistent with 

applicable law or otherwise impractical. 

Voluntary consensus standards are 

technical standards (e.g., specifications 

of materials, performance, design, or 

operation; test methods; sampling 

procedures; and related management 

systems practices) that are developed or 

adopted by voluntary consensus 

standards bodies. 

This proposed rule does not use 

technical standards. Therefore, we did 

not consider the use of voluntary 

consensus standards. 

Environment 

We have analyzed this proposed rule 

under Commandant Instruction 

M16475.lD, which guides the Coast 

Guard in complying with the National 

Environmental Policy Act of 1969 

(NEPA) (42 U.S.C. 4321–4370f), and 

have concluded that there are no factors 

in this case that would limit the use of 

a categorical exclusion under section 

2.B.2 of the Instruction. Therefore, this 

rule is categorically excluded, under 

figure 2–1, paragraph (34)(g), of the 

Instruction, from further environmental 

documentation. This rule establishes 

safety zones which have duration of no 

more than three hours each. 

A final ‘‘Environmental Analysis 

Check List’’ and a final ‘‘Categorical 

Exclusion Determination’’ will be 

available in the docket where indicated 

under ADDRESSES. 

List of Subjects in 33 CFR Part 165 

Harbors, Marine safety, Navigation 

(water), Reporting and Recordkeeping 

Requirements, Security measures, 

Waterways. 

For the reasons discussed in the 

preamble, the Coast Guard proposes to 

amend 33 CFR part 165 as follows: 

PART 165—REGULATED NAVIGATION 

AREAS AND LIMITED ACCESS AREAS 

1. The authority citation for part 165 

continues to read as follows: 

Authority: 33 U.S.C. 1226, 1231; 46 U.S.C. 

Chapter 701; 50 U.S.C. 191, 195; 33 CFR 

1.05–1(g), 6.04–1, 6.04–6 and 160.5; Pub. L. 

107–295, 116 Stat. 2064; Department of 

Homeland Security Delegation No. 0170.1. 

2. Amend § 165.1315 by adding 

paragraphs (a)(15) through (18) and 

(b)(2) to read as follows. 

§ 165.1315 Safety Zones: Fireworks 

displays in the Captain of the Port Portland 

Zone. 

(a) * * * 

(15) Hillman 4th of July Fireworks 

Display, Vancouver WA: 

(i) Location. All water of the 

Columbia River forming a 600 foot 

radius from the land launching point of: 

45°35′46′′ N, 122°32′22′′ W. 

(ii) Enforcement Period. This section 

is enforced annually on July fourth from 

approximately 8:30 p.m. to 11:30 p.m. 

(PDT). 

(16) East County 4th of July Fireworks 

Gresham, OR 

(i) Location. All water of the 

Columbia River forming a 600 foot 

radius from the land launching point: 

45°33′ 33′′ N, 122°27′03′′ W in the 

vicinity of Blue Lake Park. 

(ii) Enforcement Period. This section 

is enforced annually on July fourth from 

8:30 p.m. to 11:30 p.m. (PDT). 

(17) Port of Cascade Locks July 4th 

Display, Cascade Locks OR. 

(i) Location. All water of the 

Columbia River forming a 600 foot 

radius from the land launching point: 

45°40′16′′ N 121°53′38′′ W the North 

point of Thunder Island. 

(ii) Enforcement Period. This section 

is enforced annually on July fourth from 

8:30 p.m. to 11:30 p.m. (PDT). 

(18) Gladstone 4th of July Celebration, 

Gladstone, OR 

(i) Location. All water of the 

Columbia River forming a 800 foot 

radius from the land launching point: 

45°22′21′′ N, 122°36′34′′ W. 

(ii) Enforcement Period. This section 

is enforced annually on July fourth from 

8:30 p.m. to 11:30 p.m. (PDT). 

(b) * * * 

(2) Designated representative means 

Coast Guard Patrol Commanders, 

including Coast Guard coxswains, petty 

officers or other officers operating Coast 

Guard vessel and a Federal, State, and 

local officers designated by or assisting 

the Captain of the Port Portland (COTP) 

in the enforcement of the safety zone. 

* * * * * 

Dated: March 20, 2007. 

Patrick G. Gerrity, 

Captain, U.S. Coast Guard, Captain of the 

Port, Portland, OR. 

[FR Doc. E7–7634 Filed 4–20–07; 8:45 am] 

BILLING CODE 4910–15–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[CGD09–07–013] 

RIN 1625–AA00 

Safety Zone, Kenosha Harbor, 

Kenosha, WI 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Coast Guard proposes to 

establish a temporary safety zone near 

Kenosha Harbor, Kenosha, Wisconsin. 

This zone is intended to control the 

movement of vessels on portions of Lake 

Michigan during the Spill Of National 

Significance (SONS) exercise on June 19 

and 20, 2007. This zone is necessary to 

protect the public from the hazards 

associated with ships and boats 

deploying oil containment equipment. 

DATES: Comments and related material 

must reach the Coast Guard on or before 

May 8, 2007. 

ADDRESSES: You may mail comments 

and related material to Commander, 

Coast Guard Sector Lake Michigan 

(spw), 2420 South Lincoln Memorial 

Drive, Milwaukee, WI 53207. The Sector 

Lake Michigan Prevention Department 

maintains the public docket for this 

rulemaking. Comments and material 

received from the public, as well as 

documents indicated in this preamble as 

being available in the docket, will 

become part of this docket and will be 

available for inspection or copying at 


pwalker on PROD1PC71 with PROPOSALS